As of 2025, South Africa continues to face significant challenges in combating financial crimes, particularly money laundering, terrorist financing, and proliferation financing. To tackle these issues, the country has implemented robust measures to enhance its anti-money laundering (AML) framework, as outlined in recent updates to the Financial Intelligence Centre Act (FICA). These efforts, detailed in initiatives like the “Strengthening Financial Crime Prevention in South Africa” campaign by XTND (Elevating Integrity, Beyond Compliance), reflect a multi-faceted approach to align with global standards and safeguard the financial system.
One of the cornerstone strategies is enhancing compliance with Financial Action Task Force (FATF) standards. The FATF, a global watchdog on financial crime, sets rigorous guidelines to prevent illicit activities. South Africa’s updates to the Financial Intelligence Centre Act ensure that the country aligns with these international benchmarks, enabling the Financial Intelligence Centre (FIC)—which reports to the Minister of Finance and Parliament—to strengthen its oversight of financial crime prevention. This alignment is critical, as it positions South Africa to meet global expectations and avoid being placed on FATF’s grey list, which could have severe economic repercussions.
A key component of these reforms is the expansion of oversight through the classification of more businesses as Accountable Institutions (AIs). These institutions, which include banks, legal firms, and other entities, are now subject to stricter regulations to monitor and report suspicious transactions. This broader oversight enhances the fight against money laundering, terrorist financing, and proliferation financing—activities that threaten national and global financial security. By increasing the number of entities held accountable, South Africa aims to create a more transparent and secure financial environment.
However, compliance comes with challenges, particularly the cost of non-compliance. Businesses that fail to adhere to the updated FICA regulations risk hefty fines, reputational damage, and legal consequences. The amendments emphasize the importance of understanding and implementing new regulations to stay compliant and secure. Accountable Institutions must invest in training, technology, and robust internal controls to detect and prevent financial crimes effectively. This responsibility extends beyond mere adherence to rules; it requires a culture of integrity, as highlighted by XTND’s mission to elevate integrity beyond compliance.
Navigating these new regulations is no small feat. Accountable Institutions must stay informed about evolving risks and adapt their practices accordingly. The FIC plays a pivotal role in ensuring adherence to these changes, providing guidance and enforcing accountability across sectors. For businesses, this means adopting advanced AML tools, conducting regular risk assessments, and fostering collaboration with regulatory bodies to mitigate risks effectively.
A recent high-profile case underscores the ongoing challenges and the importance of these measures. In early 2024, South African authorities charged several individuals linked to a major money laundering scheme involving the misappropriation of funds from a state-owned enterprise. The investigation, led by the Directorate for Priority Crime Investigation (commonly known as the Hawks), uncovered a network that funnelled millions of rand through shell companies and offshore accounts, disguising the proceeds as legitimate business transactions. The case highlighted vulnerabilities in oversight, particularly within certain Accountable Institutions that failed to report suspicious activities as required under FICA. This transgression not only resulted in significant financial losses but also drew international scrutiny, prompting the FIC to intensify its enforcement actions and collaborate with global partners to strengthen AML controls.
South Africa’s commitment to strengthening its AML framework is a proactive step toward protecting its economy and maintaining international trust. However, the success of these measures depends on collective action—government, businesses, and financial institutions must work together to stay informed and act responsibly. As financial crime evolves, so too must the strategies to combat it, ensuring a secure and resilient financial landscape for the future. Through initiatives like those championed by XTND and the FIC, South Africa is well-positioned to address AML risks head- on, fostering a system where integrity and compliance go hand in hand.
Leon Towsen
Executive Head, XTND
